In the US, the is quite the sobering read – littered with tariff risk talk and at best flattish activity. Shaping up to be quite the week, with the pivotal upcoming payrolls to cap it off. In the eurozone, back-end euro rates could come down a notch if US jobs data were to harm global risk sentiment, but the front end has a much higher hurdle to move
That Beige Book Is Bleak
The latest Fed’s Beige Book painted quite a bleak picture. If you are a coffee drinker, here’s a snippet from the New York survey
“A coffee roaster reported that tariffs on Brazilian coffee and on other supplies were creating shockwaves through the supply chain.”
Essentially, the report was littered with tariff warnings on prices.
Even second-round effects, as from the Richmond survey we had, for example,
“A printer manufacturer that doesn’t import products experienced increased costs ranging from 5%…
